July 2007: In the Grip of Public Debt

Over the past ten years and whether from the central government, public corporations or municipalities, Puerto Rico has piled up a huge amount of public debt. Puerto Rico is not the only developed country afflicted by large public debt, but we have many reasons to be concerned. Despite big injections of money, our public infrastructure is nothing to be proud of. The government has covered budget shortfalls with debt issues. It is definitely time to find a way out of this perverse trend that drags the economy and clouds its recovery. This issue zooms on public debt in Puerto Rico and analyzes how sustainable is the pace of public debt and its implications for economic growth.